Aggressive traders tend to hold as long as possible, exiting on a break above a falling trendline or reversal candle high.

Conservative traders may exit on a ‘poke’ outside the lower Bollinger Band or test of the prior price swing low.

Some aggressive traders hold a core position as long as price continues to trade under the 20 EMA (exit near close).

We can see four clean examples of this method on the @ES (above) and @YM (below) 5-min charts:

One of the powerful drivers of a Trend Day is the sudden shock to the system and large-scale shift in the Supply/Demand relationship. That’s why fade or reversal strategies tend to fail spectacularly on Trend Days.

Perversely, traders who fight or fade a trend day often help propel the trend in motion with their stop-losses – it’s very important to understand this fact.

Though Trend Days aren’t as common as Normal or Range Days, it’s important to know what NOT to do on a Trend Day so you don’t give back hard-fought profits from trading ‘normal’ sessions.

Building on that foundation, we can apply simple retracement or pro-trend strategies as long as the Trend Day continues, which objectively would be as long as price remains ‘trending’ beneath the 50 EMA on a 5-min chart.

A breakthrough above the 50 EMA tends to trigger a “Rounded Reversal,” but that’s a whole other topic for later.